Fraudulent Somali Daycare Was Hiding In Plain Sight For Decade, Known By FBI

The Minneapolis daycare at the center of a viral fraud investigation faced federal charges nearly a decade ago for allegedly stealing hundreds of thousands of dollars from a low-income assistance program.

Federal prosecutors charged Fozia Sheik Ali in January 2017 with wire fraud and theft of public money, according to a U.S. Attorney’s Office for the District of Minnesota press release.

The U.S. Attorney’s Office alleged Ali operated the Salama Child Care Center and submitted claims that overstated attendance by more than 400% on some days. Ali allegedly billed the state even when the center was closed.

“This indictment describes a selfish criminal act that kept money from being available for deserving families,” Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans said at the time. (RELATED: Kash Patel Says FBI Investigation Into Alleged Minnesota Fraud Will Broaden As New Details Emerge)

CASE UPDATE: MINNESOTA FRAUD SCHEME

The FBI is aware of recent social media reports in Minnesota. However, even before the public conversation escalated online, the FBI had surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes…

— FBI Director Kash Patel (@FBIDirectorKash) December 28, 2025

The Salama Child Care Center operated at 1411 Nicollet Avenue, close to downtown Minneapolis. Federal Bureau of Investigation (FBI) agents and Minnesota Department of Human Services (DHS) investigators raided that facility in May 2015 for allegedly bilking the state’s childcare subsidy program, The Minnesota Star Tribune reported.

Ali later pleaded guilty and received a two-year federal prison sentence, according to Fox 9. She paid $1.5 million in restitution.

State regulators revoked Salama’s license shortly after the 2015 raid, according to The Minnesota Tribune. Minnesota DHS records show Quality Learning Center Inc. received a new license at the same address in October 2017. The state placed that license on conditional status in 2022 after repeated violations.

Agents carried boxes and computers from the building during the 2015 raid while parents arriving to drop off their kids were turned away at the door.

The address now faces renewed federal scrutiny after independent journalist Nick Shirley’s video showed the facility appearing vacant despite reportedly receiving millions in state funds.

The FBI declined to comment to the Daily Caller.